Marianne Kearney, Jakarta – Former Defence Minister and military chief General Wiranto yesterday denied having misused 10 billion rupiah (S$1.7 million) from the state food logistics agency known as Bulog.
However, General Wiranto did admit to prosecutors that the 10 billion rupiah had been used to fund a security outfit in East Timor prior to an independence ballot there.
House Speaker and Golkar party chief Akbar Tandjung has also been implicated in the misuse of funds following revelations by former Bulog chief Rahardi Ramela that 54.6 billion rupiah in agency funds had been transferred to certain officials.
Rahardi said he had handed over 40 billion rupiah from the Bulog coffers to Akbar Tandjung in 1999. The money allegedly had been earmarked for a poverty-alleviation scheme that was mooted at the height of the Asian financial crisis. Then 4.6 billion rupiah had been lent to a private company controlled by the youngest son of former President Suharto. Another 10 billion rupiah had been channelled to Gen Wiranto.
Mr Akbar, who was questioned by the Attorney-General late yesterday after Gen Wiranto, also has denied misuse of funds. He said he could not remember which charity had received the money.
Critics say it was used to fund Golkar's election campaign. Suspicion about the missing funds has been aroused because their disbursement in 1999 was decided at a private meeting and the "loan" from Bulog was approved by then President B. J. Habibie. At the time, Mr Habibie was campaigning for re-election.
If Mr Akbar is found to have misused state funds to finance Golkar's electoral campaign, he could be expelled from parliament and his party could be disbanded. Lawyers said they were doubtful the case would reach the courts as much of the evidence had disappeared.
Other lawyers say that even with strong evidence, the case could still be derailed in Indonesia's highly corrupt system. "It is not about the evidence but about the integrity of the Attorney-General's office," said Asmara Nababan, a lawyer from the National Human Rights Commission. "Do they have the courage to prosecute and face the political pressure from Golkar and everyone?" he asked.
Several people were injured in a melee which broke out yesterday when security guards at the Attorney-General's office tried to block journalists from photographing and filming Mr Akbar's arrival for interrogation.
As for General Wiranto, he defended the redirection of the emergency welfare funds, by saying the money had been used "to secure democracy" in East Timor and not to fund the pro-Jakarta militia.
The militia, backed and trained by the Indonesian military, laid waste to the territory in 1999 in retaliation for an overwhelming vote for independence. "It was used to make the poll in East Timor a success but not to support any of the contestants," he said after his interview with the Attorney-General.Observers say it would be unusual for Bulog funds to have been used in East Timor.